Flipping property traditionally means buying undervalued homes to “flip” for a profit. Many home renovation programs have flippers occupy and repair properties before flipping modern homes. That wasn’t the case in the heyday, but nowadays flippers are often misunderstood. A real estate mentor can help you understand who they really are and what they do through this blog post.
What is a House Flipper?
A house flipper is an individual or company that purchases properties, typically in need of repairs or renovations, with the intention of making significant improvements and then selling them at a higher price. The goal of a house flipper is to enhance the property’s value through strategic upgrades and renovations, aiming to generate a profit upon resale. House flippers often focus on identifying properties with potential, negotiating favorable deals, and efficiently executing the renovation process to maximize their returns. This practice is a popular investment strategy in the real estate market, requiring a keen eye for value, understanding of local markets, and effective project management skills.
History of Flippers
House flippers contract with purchase a property from the current owner for the sole purpose of immediately turning around to sell that property. In an overheated market, it wasn’t uncommon for the same property to change hands multiple times at the closing table before reaching the final buyer. It sounds a bit complicated, so here’s an example:
Person A finds a vacant lot for sale and estimates its value at $50,000 more than its asking price of $100,000. Person A purchases the property from Person B while also negotiating the sale of the property to Person C for $150,000 based on research. In doing so, Person A gives Person B the asking price and makes $50,000 flipping the contract to its end owner.
Online investment courses and the preference of many to invest in real estate online made resources like the MLS and county records available, so fair market values are easier to determine. Many flippers find themselves taking possession, rehabbing, and “flipping” homes in today’s market.
It’s more traditionally known as a “fix and flip,” but it’s still a valid way to earn revenue. Properties sell below the market all the time. Someone will take advantage of the opportunity to repair or rebuild — why not you?
3 Real Estate Mentor-Approved Tips on How to Market to Flippers
Owners sell property under market values for a variety of reasons. They no longer want the property, and they want it gone fast. The process of interviewing a real estate agent, getting an inspection and doing repairs, preparing for the market, staging, showing, etc., can be difficult. They’re happy to take an under-market price from a real estate investor willing to put in the time to do all that.
Otherwise, here are three ways to get your property noticed by real estate flippers.
1. List a Property on MLS
If you’re licensed, listing a property on Multiple Listing Service (MLS) is the fastest way to get interested eyes on it. MLS is used by real estate brokers to share resources in a fast-paced market. It’s the single most reliable real estate resource online, and even if you’re not licensed, you should be using it over third-party marketplaces like Zillow as your go-to resource.
2. List a Property as a “Handyman’s Special”
People will understand that a “Handyman’s Special” is a “fix and flip.” There’s nothing wrong with a property that can’t be cured by the proper price adjustment. Someone will inevitably believe every property is too expensive, while others will find it a bargain and buy it.
3. Find Buyers in Person
People will always trust in-person contact more than online. It puts a human touch on the transaction that makes it feel more real, even if they invest in real estate online. Join local real estate investing networks to find buyer pools, and talk to people you already know who have active investments in any field. They may be considering another real estate investment.
What Are the Advantages Of Selling Property To A Flipper?
Selling your property to a flipper can have some advantages:
Quick Sale: Flippers often buy homes fast, which can be helpful if you need to sell quickly.
As-Is Sale: They usually buy homes in any condition, saving you from costly repairs.
Less Hassle: Flippers handle fixes, so you don’t deal with renovations.
Avoiding the Market: You skip the traditional selling process.
Cash Offers: Many flippers pay in cash, speeding up the transaction.
What Questions To Ask When Selling To A House Flipper
If you’re considering selling to a flipper, ask these questions:
Experience: How long have you been flipping houses?
References: Can you provide references from past sellers?
Process: How do you determine your offer price?
Timeline: How quickly can you close the deal?
Contracts: What’s in the contract? Can I have my attorney review it?
Inspection: Will you do an inspection, and will I get the results?
Contingencies: Are there any contingencies in the offer?
Reputation: Are you a member of any industry organizations?
Communication: How will you keep me updated throughout the process?
Payment: How will I receive payment, and how long does it take?
Asking these questions can help you make an informed decision about selling to a house flipper.
Get Started Flipping Houses Today and Improve Your Skills with a Real Estate Mentor
Flippers are people who understand how to buy low and sell high. It includes everything from real estate agents and market analysts to institutional investors. They’re the day traders of the real estate market.
If you want to attract flippers, you need to become an expert flipper yourself. In doing so, you’ll learn the lingo and where investors are through the natural progression of your financial goals. As you gain financial independence, you learn to find flippers who want a fast profit. If necessary, you can negotiate all the repairs and other fine details.
Ultimately, flippers, like other real estate investors, want maximum profit for minimum work. If you show that you’re willing to go the extra mile and close deals as fast as possible, flippers will eventually find you. Your online marketing is just a way to help them find you and learn about what you’re doing.
It takes 10,000 hours of hard work, practice, and taking steps to eventually achieve “overnight” success. If you start now, you’ll get there faster than you think.
Learn the principles and laws of real estate before you start flipping through our expert online investment courses and real estate mentorship.
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